Protecting your Assets with a Medicaid Asset Protection Trust

Long-term care is expensive—and for many families, it’s a looming financial threat. Medicaid can help cover the costs of a nursing home or in-home care, but there's a catch: you must meet strict income and asset limits.  Most people think the only way to qualify for Medicaid is to spend your assets down to $2000, which leaves nearly nothing else for you to live on or pass to your heirs. Fortunately, there’s a legal strategy that allows you to protect your assets and still qualify for Medicaid: the Medicaid Asset Protection Trust (MAPT).

What Is a Medicaid Trust?

A Medicaid Trust, often referred to as a Medicaid Asset Protection Trust, is an irrevocable trust designed to protect your home, savings, and other assets from being “spent down” to meet Medicaid eligibility requirements. By transferring certain assets into a MAPT at least five years before you apply for Medicaid, those assets are no longer considered part of your estate for eligibility purposes.

This means you can still qualify for long-term care benefits while preserving your legacy for your loved ones.

Why Consider a Medicaid Trust?

Here’s why more families are using this strategy:

• Protect your home: You can still live in your home, but it won’t count against you when applying for Medicaid.
  
• Avoid the Medicaid Estate Recovery Program: After you pass away, Medicaid often tries to recoup its costs from your estate. Assets in a MAPT are typically shielded from recovery.
  
• Secure peace of mind: You’ll know your assets are safe and your care is covered.
  
• Maintain control: While the trust is irrevocable, you can still retain some influence by naming a trusted family member or professional as the trustee.

Timing Is Key: The 5-Year Lookback Rule

To be effective, assets must be transferred to the trust at least five years before applying for Medicaid. This “lookback period” means planning ahead is essential. If you wait until a crisis hits, it may be too late to protect your assets.

Work With an Elder Law Attorney

Setting up a Medicaid Trust is a complex legal process. An experienced elder law attorney can help you decide what assets to transfer, structure the trust correctly, and ensure your plan complies with Washington State Medicaid rules.

For Washington residents, Washington Elder Law is a trusted resource for Medicaid planning, estate protection, and elder law services. Their team helps families plan proactively, so they can qualify for benefits without losing everything they’ve worked for.

Don’t Wait for a Crisis—Plan Now

Long-term care doesn’t have to drain your life savings. With the right planning, you can protect your assets and provide for your family, even if you need Medicaid assistance down the road.

If you’re thinking about the future—or helping aging parents do the same—now is the time to explore how a Medicaid Trust could work for you.

👉  Contact Washington Elder Law today to schedule a free consultation or attend a workshop, and start protecting what matters most.